As a contract lawyer, many clients ask me if their contracts are legally binding. By definition, if an agreement meets the requirements of a contract, then the contract is legally binding. Further, contracts are legal documents by their nature. So what makes a contract binding and enforceable? And what are some factors that make a contract not binding? Below, I will explain that all for you.
The basic elements of a contract are: 1) offer, 2) acceptance, and 3) consideration. 'Consideration' is that thing that the parties bargain for exchange and distinguishes a mere 'promise' (which is not legally binding) from a contract. For example, if a painter promises to paint your house but then never does, you probably have no legal claim (there are exceptions to this). However, if you pay the painter (the money is consideration) and the painter does not paint, then you have a contract with the painter and the painter breached the binding contract.
At its core, a contract is very simple. It does not necessarily have to be in writing, nor does it need to be written in complicated legalese. There are, however, other important requirements such as 'clear and definite terms' and a 'meeting of the minds' so it's still important to have a well written contract. But having a user-friendly contract is more important than having obscure legalese language.
Elements of a Contract
The basic elements of a contract are: 1) offer, 2) acceptance, and 3) consideration. 'Consideration' is that thing that the parties bargain for exchange and distinguishes a mere 'promise' (which is not legally binding) from a contract. For example, if a painter promises to paint your house but then never does, you probably have no legal claim (there are exceptions to this). However, if you pay the painter (the money is consideration) and the painter does not paint, then you have a contract with the painter and the painter breached the binding contract.
At its core, a contract is very simple. It does not necessarily have to be in writing, nor does it need to be written in complicated legalese. There are, however, other important requirements such as 'clear and definite terms' and a 'meeting of the minds' so it's still important to have a well written contract. But having a user-friendly contract is more important than having obscure legalese language.